Chapter 7 Bankruptcy Information

For filers wanting clarification on the different types of bankruptcy, here is some chapter 7 bankruptcy information. Chapter 7 bankruptcy is popular with people who have very little property or assets to protect because it is actually possible to keep everything you own.

I filed a chapter 7 bankruptcy because I fell into this category. Mine was what is known as a simple 7 no asset case. What type is best for you will depend on your individual circumstances and it is best to consult a chapter 7 bankruptcy attorney when making this determination.

In a chapter 7 bankruptcy you are petitioning the bankruptcy court to discharge all or most of your debt*. The bankruptcy trustee may take any property that you own that is not exempt from collection in order to sell it and distribute the money to your creditors. I will discuss exemptions in another post but you should know that different states have different exemptions and 15 states also allow you to choose federal exemptions over state if you want. California is not one of these states.

You will not be able to file chapter 7 bankruptcy unless you meet the eligibity requirements. If, after taking a means test, it is determined that you are able to pay back all of some of your debt to your creditors over a five year period, you will have to file a chapter 13 bankruptcy instead. However, if you if you have secured debts of more than $1,010,650 and/or unsecured debts of more than $336,900, you cannot file a chapter 13 bankruptcy.

If you qualify for and have a successful chapter 7 bankruptcy, you will probably be discharged about 3 months from the date of filing but there are no guarantees. My case, simple as it was, was not discharged for a full six months. California bankruptcy courts tend to be backed up, especially in the central district.

*Not all debt is dischargable. Some examples of non-dischargable debts are student loans, recent taxes, child support & alimony, and criminal fines.

Should You File Bankruptcy Pro Se?

Should you file bankruptcy pro se?

Say what? Pro Se. Pro Se is Latin for by oneself or without an attorney. So should you file bankruptcy pro se? I don’t know, how smart are you? You may be a perfectly capable and very intelligent person but there is a great deal of debate going on about whether or not you should file bankruptcy pro se because one mistake can foul up an entire bankruptcy outcome.

I like to think that I could have filed bankruptcy pro se but I’ll never know because I opted to hire an attorney. It was comforting to know that there was going to be someone with me at my 341 hearing (meeting of the creditors) and I wanted to be able to refer creditors to someone else.

My phone was ringing off the hook and I had stopped answering the phone. Not only were they calling me at home; some were calling me at work and a couple even contacted my relatives. Once I retained my attorney, I started answering the phone and gave each creditor, one by one, my attorney’s name and number. My phone did not go completely silent but grew much, much quieter. This was a huge relief.

One reason that you may want to file bankruptcy pro se is obvious. You have NO money. Hiring an attorney is expensive and you have no idea how you are going to come up with the dough.

The good news is that many bankruptcy attorneys will let you pay them off over time. They will not file until they have been paid in full (including the filing fee) but may handle creditor calls for you in the meantime. This is a good question to ask when interviewing potential attorneys.

Another reason you may want to file pro se is to be the master of your own destiny. After all, who cares more about your bankruptcy than you do? Well, that makes sense but can also be risky. Your best bet is to educate yourself, hire a good attorney and then stay on top of all proceedings. Don’t be afraid to ask questions when you think something might be overlooked.

Many people filing bankruptcy on their own make mistakes that cost them a successful discharge. Still many do file bankruptcy pro se successfully. The decision is yours to make so make it carefully. If you do decide to file bankruptcy pro se, buy a good book on the subject but make sure it is up to date with the current bankruptcy laws. The Nolo Press books have a good reputation amongst pro se filers.

Good luck whatever you decide!

I Found My Los Angeles Bankruptcy Attorney on eBay!

I'm not kidding! I wasn't really looking for a Los Angeles bankruptcy attorney on eBay..that would be absurd...but not as absurd as actually finding one on eBay.

I was looking for books on bankruptcy and stumbled across this law firm's ad for Los Angeles bankruptcy attorneys. I had already consulted with a few other bankruptcy attorneys that I had found online, but hadn't yet found one that I was both comfortable with and could afford.

This guy sounded affordable so, after googling him and finding that he and his firm had a good reputation, I called and set up a consultation for that afternoon.

I had been doing my homework online for months preparing for this bankruptcy so I already had a list of questions but I was nervous. He quickly put me at ease though, and that was no easy feat.

So after a successful consultation, I finally had an Attorney. It was the strangest feeling. I had a bankruptcy attorney.

I would not hesitate again to find an attorney online. Mine no longer advertises on eBay--I just checked--I don't know why. Guess it wasn't as good for him as it was for me...ahem. Unless you know someone who can recommend a good bankruptcy attorney, which isn't likely since no one likes to discuss bankruptcy, finding your lawyer online is probably the best way. If that makes you uncomfortable, well, there's still the yellow pages.

Or if you're one of those broke but brave types, you file pro se (without an attorney) but I'll discuss that in another post. Me, I needed the comfort that came with having an attorney. I needed a bankruptcy blankie.

My Los Angeles Bankruptcy attorney has to be my best eBay find ever!

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